USD 113.97 billion
Travel Retail Market Size, Share, Growth Analysis, By Traveller Type(International Travelers, Domestic Travelers and Business Travelers.), By Application Channel(Airports, Cruise Lines) - Industry Forecast 2024-2031
Report ID:
SQMIG25O2012 |
Region:
Global |
Published Date: March, 2024
Pages:
223
|
Tables:
63 |
Figures:
75
Travel Retail Market Insights
Global Travel Retail Market size was valued at USD 113.97 billion in 2022 and is poised to grow from USD 124.66 billion in 2023 to USD 255.41 billion by 2031, growing at a CAGR of 9.38% in the forecast period (2024-2031).
The global travel retail market has witnessed significant growth over the years, driven by various factors such as increasing disposable incomes, expanding tourism industry, and rising consumer preferences for luxury goods and experiences. Travel retail refers to the sales of goods and services to travelers at airports, cruise ships, duty-free shops, and other travel-related locations. This market analysis will provide insights into the current state of the global travel retail market, including key trends, market size, and regional dynamics. In recent years, the global travel retail market has experienced a shift in consumer behavior and preferences. Travelers are seeking unique and personalized shopping experiences, leading to the emergence of experiential retail concepts. Retailers are focusing on creating immersive environments, offering exclusive products, and providing exceptional customer service to enhance the overall travel retail experience. This trend has resulted in higher sales and increased customer loyalty.
US Travel Retail Market is poised to grow at a sustainable CAGR for the next forecast year.
Market snapshot - 2024-2031
Global Market Size
Largest Segment
International Travelers
Fastest Growth
International Travelers
Growth Rate
9.38% CAGR
Global Travel Retail Market ($ Bn)
Country Share for Asia Pacific Region (%)
Global Travel Retail Market By Type ($ Bn)
Global Travel Retail Market By Type (%)
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Travel Retail Market Segmental Analysis
The global travel retail market is segmented into type, application, and region. Based on type, the market can be segmented into International Travelers, Domestic Travelers and Business Travelers. Based on application, the market is segmented into Airports, Cruise Lines, Ferries and Trains, Downtown and Border Stores . Based on region, the market is segmented into North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.
Travel Retail Market Analysis by Type
The dominant segment within the global travel retail market is the international travelers segment.It comprises tourists and visitors from different countries, representing a significant portion of the travel retail market. These travelers often seek unique shopping experiences, luxury brands, and exclusive products that they may not find in their home countries. The appeal of duty-free shopping and the desire to explore and purchase goods from different cultures and regions contribute to the dominance of International Travelers in the travel retail market.
Regarding the fastest-growing segment, the business travelers segment exhibits strong growth potential within the global travel retail market. Business travelers, including executives, professionals, and corporate employees, often engage in travel for meetings, conferences, and business-related purposes. These travelers tend to have higher disposable incomes and a need for convenience, quality, and efficiency during their trips. As a result, the travel retail market has recognized the importance of catering to the specific demands of business travelers, providing them with tailored products and services that enhance their travel experience. The growing number of business-related travel activities and the rising emphasis on personalized offerings contribute to the fast growth of the Business Travelers segment in the travel retail market
Travel Retail Market Analysis by Application
Among the applications in the global travel retail market, the dominant segment is airports. Airports have traditionally been the primary hub for travel retail, offering a wide range of products and services to cater to the needs of travelers. Airports provide a captive audience of passengers with time to spare before their flights, making them ideal locations for retailers to capture sales. The airport travel retail segment encompasses various product categories such as duty-free shops, luxury goods, cosmetics, fashion, electronics, and food and beverage outlets. The convenience, extensive product offerings, and growing number of international travelers passing through airports contribute to the dominance of this segment in the global travel retail market.
In terms of the fastest-growing application segment in the global travel retail market, downtown and border stores are witnessing significant growth. Downtown stores are located in city centers and attract both local residents and tourists. These stores often offer a diverse range of products, including luxury brands, fashion, accessories, souvenirs, and local specialties. Border stores, on the other hand, are strategically positioned near border crossings, attracting travelers looking for duty-free shopping opportunities. The growth of downtown and border stores is driven by factors such as increasing urbanization, rising disposable incomes, changing consumer preferences, and the desire for unique shopping experiences. Additionally, the expansion of travel and tourism, especially in emerging markets, contributes to the growing popularity of downtown and border stores in the global travel retail market.
Global Travel Retail Market By Type, 2022 (%)
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Travel Retail Market Regional Insights
The most dominant region in the global travel retail market is Asia Pacific. This region has emerged as a powerhouse, primarily driven by the rising disposable income, expanding middle-class population, and increasing outbound tourism from countries such as China, India, and Southeast Asian nations. Moreover, the growth in air passenger traffic and the development of modern airports in countries like China and Singapore have created a conducive environment for the travel retail market to flourish. Asia Pacific is home to several major travel retail hubs, including Singapore Changi Airport, Incheon International Airport in South Korea, and Hong Kong International Airport, attracting a large number of international travelers. The strong presence of luxury brands and the popularity of duty-free shopping further contribute to the dominance of the Asia Pacific region in the global travel retail market.
When it comes to the fastest-growing region in the global travel retail market, the Middle East stands out. Countries such as the United Arab Emirates, Qatar, and Saudi Arabia have witnessed significant growth in the travel retail sector due to their strategic location as global travel hubs and investments in infrastructure development. Dubai International Airport, for instance, has positioned itself as a major travel retail destination, offering a wide range of luxury brands and duty-free shopping experiences. Additionally, the Middle East region has witnessed a surge in international tourists, particularly from Asia and Europe, who often pass through the Middle East airports during their travel routes. The availability of diverse product offerings, favorable tax policies, and the growing popularity of shopping festivals like the Dubai Shopping Festival contribute to the rapid growth of the travel retail market in the Middle East.
Global Travel Retail Market By Geography, 2024-2031
- Largest
- Fastest
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Travel Retail Market Dynamics
Travel Retail Market Drivers
Expanding Tourism Industry
- The expansion of the tourism sector plays a crucial role in driving the travel retail market. Popular tourist destinations attract a substantial number of travelers who are often eager to indulge in luxury goods, fashion items, cosmetics, and other products available at travel retail outlets. Cities with high tourist footfall, such as Dubai, Singapore, and Paris, observe notable activity in the travel retail sector.
Travel Retail Market Restraints
Price Disparities
- Price disparities between travel retail and domestic retail can sometimes discourage potential customers. These discrepancies in pricing may arise due to factors like taxes, duty-free allowances, and supply chain costs. When consumers encounter significant differences in prices, they may choose to delay their purchases or seek alternative locations to buy the desired products.
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Travel Retail Market Competitive Landscape
The global travel retail market is a highly competitive landscape with several key players vying for market share. This market primarily encompasses the retail sales of various products, including cosmetics, luxury goods, fashion accessories, alcohol, tobacco, and confectionery, among others, within airports, cruise ships, border stores, and downtown duty-free shops.The competitive landscape of the global travel retail market is characterized by the presence of multinational companies, regional players, and local retailers. Multinational companies often have a strong global presence, leveraging their brand recognition, extensive distribution networks, and marketing capabilities to capture a significant portion of the market. These players typically have strategic partnerships with airports, cruise lines, and travel operators to secure prime retail locations and attract a wide customer base. Regional players and local retailers, on the other hand, often focus on specific geographic areas or niche product categories. They leverage their understanding of local preferences, cultural nuances, and relationships with suppliers to cater to the needs of specific customer segments. These players often compete on offering unique product assortments, personalized services, and competitive pricing to differentiate themselves in the market.
Travel Retail Market Top Player’s Company Profiles
- DFS Group (United States)
- The Shilla Duty Free (South Korea)
- Lagardère Travel Retail (France)
- Gebr. Heinemann (Germany)
- King Power International Group (Thailand)
- Flemingo International (United Arab Emirates)
- Aer Rianta International (Ireland)
- China Duty Free Group (China)
- JR Duty Free (Australia)
- Ever Rich Duty Free (Taiwan)
- World Duty Free Group (United Kingdom)
- Duty Free Americas (United States)
- LS Travel Retail (France)
- Nuance Group (Switzerland)
- T Galleria by DFS (Hong Kong)
- Aelia Duty Free (France)
- Delhi Duty Free Services (India)
Travel Retail Market Recent Developments
-
In October 2023 Duty-free Hainan Island, China's DFS Group, the travel retail branch of the well-known French company LVMH, is planning to build a sizable entertainment and retail complex there. The goal of this calculated action is to capture the rapidly growing tourism industry, which has shown remarkably resilient even during economic downturns.
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Expanding their partnership in July 2023, Lagardère Travel Retail and Inflyter aim to further the digitization of the Duty-Free shopping experience for a wider range of travelers. With this expanded relationship, travelers will have more options for pre-trip browsing and purchases, which is in line with Lagardère Travel Retail's overall digital strategy to grow the number of digital sales channels and establish additional touchpoints with customers throughout their trip.
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With the opening of a new Coach Boutique in June 2023 at Hamad International Airport, Qatar Duty Free (QDF) will be adding to its already remarkable selection of travel-related goods. This brand boutique in New York offers an enticing selection of items, such as clutches for men and women, small leather goods like card holders and compact wallets, crossbody bags, totes, and purses. The recently opened store proudly displays a fine assortment of Coach's hallmark pieces, with standout pieces from the Willow Collection—which is well-known for its adaptability in holding daily necessities—the Tabby Collection, and the classic shoulder bags.
Travel Retail Key Market Trends
- Rise in Inclination towards Eco-friendly Products: In recent times, there has been a noticeable shift in consumer preferences among travelers, with a growing inclination towards purchasing sustainably made duty-free products. This emerging trend is driven by the desire to minimize the environmental impact associated with non-biodegradable items. In response, airport retailers are increasingly adopting sustainable business practices to meet the demand for eco-friendly options. These practices include initiatives such as waste recycling and reduction, the use of biodegradable packaging, and the sourcing of raw materials from ethical and sustainable suppliers. The focus on sustainability not only aligns with environmental concerns but also presents new opportunities for market growth in the travel retail sector.
Travel Retail Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
According to our global travel retail market analysis, Factors such as increasing disposable incomes, rising international tourism, and expanding air travel contribute to the market's expansion. Additionally, the growing trend of shopping at airports, seaports, and duty-free stores has fueled the demand for retail products in travel settings. One of the key findings of the report is the rising adoption of e-commerce and digital platforms in the travel retail market. With the increasing penetration of smartphones and internet connectivity, consumers are increasingly seeking convenience and personalized shopping experiences. Online travel retail platforms enable travelers to browse and purchase a wide range of products, including luxury goods, cosmetics, fashion, and electronics, with the added benefit of duty-free prices. The report also highlights the role of duty-free shops in driving the growth of the travel retail market. Duty-free shops offer tax-free shopping opportunities to travelers, making them an attractive destination for purchasing premium and luxury goods at competitive prices. These shops are strategically located in airports, seaports, and border crossings, capitalizing on the high footfall of international travelers.
The global travel retail market is highly competitive, with major players vying for market share. The report profiles key companies operating in the market, including DFS Group, Dufry AG, The Shilla Duty Free, Lagardère Travel Retail, and Heinemann, among others. These companies employ strategies such as partnerships, acquisitions, and product diversification to enhance their market presence and cater to the evolving demands of travelers.
| Report Metric | Details |
|---|---|
| Market size value in 2022 | USD 113.97 billion |
| Market size value in 2031 | USD 255.41 billion |
| Growth Rate | 9.38% |
| Base year | 2023 |
| Forecast period | 2024-2031 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
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| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
|
| Customization scope | Free report customization with purchase. Customization includes:-
|
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Travel Retail Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Travel Retail Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Travel Retail Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Travel Retail Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Travel Retail Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Travel Retail Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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